Piramal Finance Shares Fall 3% After Board Approves Rs 1,750 Crore Warrant Issue To Promoter Entity

Shares of Piramal Finance fell nearly 3% on Monday, August 24, after the company's board approved a preferential issue of warrants worth up to Rs 1,750.03 crore to promoter group entity Nithyam Realty Private Limited, as reported by CNBC-TV18.

The stock fell as much as 2.7% to Rs 2,123.10 on the NSE. At around 12:07 pm, it was trading at Rs 2,127, down 2.47%.

Under the proposed issue, Piramal Finance will issue up to 82.94 lakh warrants to Nithyam Realty through a preferential issue on a private placement basis. Each warrant can be converted into one fully paid-up equity share with a face value of Rs 2.

The warrants will be issued at Rs 2,110 each, including a premium of Rs 2,108 per share. The total amount that Piramal Finance could raise through the issue is up to Rs 1,750.03 crore.

Nithyam Realty does not currently hold any shares in Piramal Finance. If all the warrants are converted, it will hold 3.53% of the company's equity share capital on a fully diluted basis.

The issue price of Rs 2,110 is Rs 24.94, or around 1.2%, above the floor price of Rs 2,085.06 per share set under SEBI regulations.

Piramal Finance Fundraise: Key Details

Nithyam Realty will pay 25% of the warrant price upfront. The remaining 75% will be payable when the warrants are converted into equity shares.

The warrants will remain valid for 18 months from the date of allotment. They can be converted in one or more tranches during this period. Any warrants that are not converted within the 18-month period will lapse, and the amount already paid on those warrants will be forfeited.

The proposed issue is subject to shareholder and other regulatory approvals. Piramal Finance has called an Extraordinary General Meeting for September 19, 2026, to seek shareholders' approval. The company will also need in-principle approval from the stock exchanges.

Piramal Finance has entered into an investment agreement with Nithyam Realty for the proposed issue. The company said the agreement does not give Nithyam Realty any special rights, including the right to appoint directors or restrict changes to Piramal Finance's capital structure.

The company has also said that the proposed issue is not a related-party transaction under the SEBI Listing Regulations, subject to compliance with the applicable SEBI ICDR requirements.

Piramal Finance Q1 FY27 Results

The warrant issue comes after a strong June quarter for Piramal Finance.

The non-bank lender reported a 67% year-on-year increase in consolidated profit after tax to Rs 461 crore in Q1 FY27, compared with Rs 276.37 crore in the same quarter last year.

Revenue from operations rose 27.7% year-on-year to Rs 3,368 crore from Rs 2,639 crore.

Assets Under Management increased 25% year-on-year to Rs 1,06,940 crore. AUM excluding the discontinued legacy business grew 32%.

Retail AUM rose 32% to Rs 91,249 crore and accounted for 85% of total AUM. Mortgage AUM increased 30% to Rs 61,199 crore, while retail disbursements rose 44% to Rs 12,527 crore.

Piramal Finance also expanded its network to 780 branches across 607 cities in 26 states. Its customer base increased 24% to 6 million.

Profitability improved during the quarter, with Net Income Margin rising 47 basis points year-on-year to 6.5%. The cost-to-income ratio fell to 52.5% from 65.6% a year earlier. Gross NPAs stood at 2.4%, while net NPAs were at 1.6%.

The company's board had also approved a separate fundraise of up to Rs 4,000 crore, which it can undertake at an appropriate time, subject to shareholder approval.

Piramal Finance Share Price

Despite Monday's decline, Piramal Finance shares are up more than 29% so far in 2026 and nearly 61% over the past year.

The stock hit a 52-week high of Rs 2,220 on July 1, 2026. Piramal Finance had a market capitalisation of around Rs 48,409 crore as of August 24, according to NSE data.

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